The Blue Heron Shop had the following inventory data: Company managers need to know the companys gross

Question:

The Blue Heron Shop had the following inventory data:

2017 2018 Ending inventory at: $ 30,040 $15,160 FIFO Cost. LIFO Cost . 12,440 18,520 Cost of goods sold at: FIFO Cost .

Company managers need to know the company’s gross profit percentage and rate of inventory turnover for 2018 under

1. FIFO.

2. LIFO.

Which method produces a higher gross profit percentage? A higher inventory turnover?

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Related Book For answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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Question Posted: Jun 15, 2019 07:49 AM

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The Blue Heron Shop had the following inventory data: Company managers need to know the companys gross

Question:

2017 2018 Ending inventory at: $ 30,040 $15,160 FIFO Cost. LIFO Cost . 12,440 18,520 Cost of goods sold at: FIFO Cost . $ 81,360 92,880 144,000 ...... LIFO Cost Sales revenue..

Step by Step Answer:

1 FIFO produces a higher gross profit percentage 2 LIF...View the full answer

Financial Accounting

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